The Financial Express

Two closed jute mills: Govt releases Tk 2.75b loan to pay dues

| Updated: October 22, 2020 16:48:07

Lankabangla and Fianancial Express Lankabangla and Fianancial Express
Two closed jute mills: Govt releases Tk 2.75b loan to pay dues

The government has released more than Tk 2.75 billion as operating loan to pay workers' arrears of two closed state-owned jute mills, officials said.

They are Crescent Jute Mills Co. Ltd and Rajshahi Jute Mills.

Fifty per cent of arrears will be paid to workers' bank accounts and the remaining through three-monthly profit-bearing savings instrument, they added.

There were 4,345 and 1,208 permanent workers at Crescent Jute Mills and Rajshahi Jute Mills respectively which were shut recently.

Operating loan has been allocated from the budget of the current fiscal year.

The government shut 25 jute mills under the Bangladesh Jute Mills Corporation (BJMC) from July 01, 2020, for incurring losses over the years.

A committee was formed on July 16 and asked to recommend reopening the units successfully within a short period.

Finance ministry issued two orders recently, setting some conditions to this effect.

According to the conditions, a detailed summary will be submitted to finance division within seven days after disbursing arrears among the workers.

The mill authorities will have to scrutinise it before paying arrears to workers.

The fund will have to be disbursed as per the government's existing rules and regulations.

It will only be used to pay arrears of the workers.

The BJMC will have to sign a memorandum of understanding with finance division after disbursing arrears of workers of 25 closed state jute mills.

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